If the Government’s latest set of changes to the super system are ever legislated, they will raise more than the forecast $900 million. Many more retirees will be caught out by the new tax on pension earnings.
The “good” news first on contribution caps
Surprisingly, it is not all bad (on paper) – so let’s start with the “good” news.
The concessional contributions cap is being increased from $25,000 to $35,000 for those over 60 from 1 July, and for those over 50, from 1 July 2014. Concessional contributions include the compulsory employer contribution of 9%, salary sacrifice and for the self-employed, contributions for which a tax deduction is claimed.